Natural Gas Price Forecast February 15, 2018, Technical Analysis

Natural gas markets continue to be negative overall, as we sold off again during the trading session on Wednesday. We are sitting just above the $2.65 level, an area that has been important in the past, but quite frankly I don’t believe in buying this market, especially if we bounce. I think that will offer an opportunity for short-sellers to get involved again, and I also recognize that the $3.00 level above should be resistive, and of course psychologically important. If we fail to rally for a longer-term move, and signs of exhaustion appear, we should start shorting again. The springtime is coming, and that should be an opportunity to start selling as we are oversupplied. I think that the $3 level above will be a massive amount of resistance, perhaps extending all the way to at least the $3.20 level. So, at this point, your job is to simply wait on the sidelines for the market to get overvalued again and start selling.

Some of you will be attracted to the idea of buying natural gas at these cheap levels, but quite frankly I think it’s a bit dangerous to do so. I think that the market will eventually find reasons to rally, perhaps a short cover rally, but will more than likely be a relatively thin volume. Thin volume gets turned around rather quickly.

NATGAS Video 15.02.18